S tarting and running a small business comes with challenges and risks, from property damage to liability claims. One of the most critical steps in safeguarding your enterprise is obtaining the right insurance coverage to protect your business from financial ruin in case of unexpected events. In 2024, companies like Coverdash and Chubb stand out for their comprehensive coverage options, affordability, and exceptional customer service tailored specifically for small businesses. Below, we explore the best small business insurance companies and answer common questions about small business insurance
Top Small Business Insurance Companies in 2024
Here are seven insurance companies that specialize in serving small businesses based on their customer service, policy options, and affordability.
Coverdash
Coverdash is an innovative insurance marketplace that simplifies obtaining business insurance. Small business owners can compare quotes from multiple top-rated insurers and purchase policies online. Coverdash is particularly beneficial for independent contractors and freelancers who need quick and easy access to insurance. It offers a variety of coverages, including general liability, professional liability, and cyber insurance.
The advantages of using Coverdash include easy-to-obtain online quotes, a wide range of coverage options, and service offerings that are ideal for independent contractors and freelancers. A potential disadvantage of Coverdash is their relative newcomer status in the market, which may affect long-term reliability assessments.
Nationwide
Nationwide is recognized for its extensive coverage options and exceptional customer service. It offers a range of policies, including general liability, workers’ compensation, and commercial auto insurance. Nationwide’s Business Owner’s Policy (BOP) is particularly popular, as it combines general liability and property insurance at a discounted rate.
The advantages of doing business with Nationwide include their comprehensive, customizable coverage, strong financial stability, and excellent customer service. However, Nationwide’s premiums run higher than other providers.
The Hartford
Hartford is a top choice for small businesses needing specialized coverage, such as commercial auto insurance. It provides tailored solutions for various industries, ensuring businesses get the protection they need. Hartford has a long history of providing insurance for small enterprises and offers comprehensive policies, including general liability and workers’ compensation. The company delivers strong financial stability and specialized policies for various industries, but their premiums may be on the higher side.
Hiscox
Hiscox provides flexible and customizable policies ideal for small businesses requiring frequent adjustments. It offers various coverages, including general liability, professional liability, and cyber insurance. Hiscox’s user-friendly online platform allows business owners to manage their policies conveniently. They offer flexible policies and a user-friendly online platform, but offer limited customer service availability.
Progressive
Progressive is known for its competitive rates and comprehensive coverage options. It offers various policies, including commercial auto, general liability, and workers’ compensation. Progressive’s online platform makes it easy for small business owners to get quotes and manage their policies. Competitive rates and comprehensive coverage options are a plus for Progressive, but they provide limited options for filing claims online.
Chubb
Chubb is renowned for its robust business owners’ policies that bundle general liability, property insurance, and business income coverage. They also offer specialized coverages like cyber insurance and professional liability. High customer satisfaction, extensive policy options, and strong financial ratings are pluses for Chubb, but they offer limited online quote options and, therefore, require working with an agent.
State Farm
State Farm excels in customer satisfaction and offers various policies, including general liability, commercial auto, and workers’ compensation. It is particularly noted for its tailored policies for contractors and artisans. State Farm ranks high in customer satisfaction, but offer limited online management options. Therefore, working with them requires agent interaction for most services.
What Is the Cheapest Small Business Insurance?
Business insurance costs for small enterprises vary depending on the type of business, its location, and coverage needs. Generally, bundling policies into a BOP is more cost-effective than purchasing individual policies. Companies like Coverdash help small business owners find affordable business insurance by allowing them to compare quotes from multiple providers.
What Type of Insurance Is Sold to Small Businesses?
Small businesses typically need several types of insurance to cover various risks.
General liability insurance—protects against claims of bodily injury, property damage, and advertising injury.
Commercial property insurance—covers damage to business property, including buildings and equipment.
Business interruption insurance—provides income replacement if the business cannot operate due to covered property damage.
Workers’ compensation insurance—this policy covers medical expenses and lost wages for employees who are injured on the job.
Professional liability insurance—also known as errors and omissions (E&O), insurance protects against negligence claims or mistakes in professional services.
Cyber liability insurance—covers losses from data breaches and cyberattacks.
Commercial auto insurance—covers vehicles used for business purposes.
You can decide for yourself, or work with an agent to decide which coverages you need.
Is Business Insurance Tax Deductible?
Yes, business insurance premiums are generally tax-deductible. According to the IRS, you can deduct premiums as a business expense for policies that are ordinary and necessary for running your company. This includes general liability, commercial property, workers’ compensation, and other essential coverages. However, premiums for policies that cover personal expenses, such as life insurance for business owners, are not deductible.
Finding the Right Small Business Insurance: Balancing Coverage and Price
Cost is a significant factor when shopping for small business insurance, but the cheapest policy might not offer the protection your business needs. Focus on coverage that matches your specific risks. Several elements influence insurance premiums:
Industry—businesses in higher-risk sectors like construction or healthcare typically pay more due to increased potential claims.
Location—companies in areas prone to natural disasters often face higher premiums to account for elevated risks.
Business size—larger businesses generally require broader coverage, driving up costs.
Claims history—having a history of insurance claims can result in higher premiums.
Selecting the appropriate coverage is necessary for safeguarding your company’s future while effectively managing costs.
Is Business Insurance Required in Texas?
In Texas, business insurance is not legally required. However, it is highly recommended because it protects your company from many types of risks. For example, while workers’ comp insurance is not mandatory for most businesses (except companies with government contracts), it is recommended to protect against employee injury claims. Commercial auto insurance is highly recommended to protect business-owned vehicles. It is always wise to get the coverage you need so you can avoid costly claims later. How much and what types of insurance you need vary depending on your industry and location.
Start Protecting Your Business with the Right Insurance
Using this guide is a proactive step towards long-term success and protection. You can secure cost-effective and comprehensive coverage by understanding your options and obtaining quotes through comparison platforms.
